Holi Business Is Invaded By Chinese; Indian Manufacturers Incur Heavy Loss As Make in India Fails

Holi is a 2000 year old Indian festival – more than a festival, it’s a tradition, a way of celebrating the win of good over evil, a dance of colors, a parade of pure joy.

However, it seems that Chinese manufacturers and traders have found a way to invade this ‘exclusive’ Indian festival as well; and as a result, traditional Indian manufacturers and sellers of Holi products such as colors (gulal), toys, water guns, sprinklers etc are experiencing a heavy loss of business.

As per estimates shared by Assocham, upto 75% of business conducted by Indians have been hijacked by Chinese companies which are delivering sub-standard products, which are not only toxic but also at a reduced price.

No ‘Make in India’ for Holi Products?

PM Modi’s grand vision of enabling more and more ‘Make in India’ products have found negligible effect during Holi, as the market is flooded with cheap Chinese products, and Indian manufacturers are incurring heavy losses.

As per Assocham Secretary General D S Rawat, during Holi, around 500 tonnes of Gulal are consumed all over India, with 200 tonnes being consumed only in UP. Cities like Barsana, Gokul, Govardhan, Mathura, Nandgaon, Vrindavan, Allahabad and Varanasi are known to be hubs of Holi celebrations, all over the country.

There are 5000 odd manufacturers who produce these 500+ tonnes of gulal every year; however, this year, due to the onslaught of cheap, toxic Chinese gulals, the market of these Indian manufacturers have been severely impacted.

Rawat said, “There is a price differential of over 55 per cent between Chinese Holi colours and sprinklers and those made by Indian manufacturers,”

These observations were made after Assocham interacted with domestic manufacturers based in Uttar Pradesh, Rajasthan, Madhya Pradesh and Gujarat who reported heavy loss of revenue this season.

Assocham’s Appeal to Government

The depressing numbers were found out during a study conducted by Assocham’s Social Development Foundation.

Assocham has appealed to the Govt. that under ‘Make in India’ program, Holi tourism should be promoted and encouraged so that local manufacturers are able to sell their seasonal and festival specific products to Indian consumers.

Besides, international and domestic tourists are also attracted to Holi festival, and they want to celebrate the festival in the most ‘Indianized’ way.

In case Chinese products for Holi floods the market, then the whole purpose of ‘Make in India’ will fail.

Although Indian market is a free market, without any boundaries for International sellers and manufacturers; we need to ensure that due to usage of cheap plastics, toxic chemicals and low quality ingredients, our domestic manufacturers don’t suffer and incur loss.

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Mohul keenly observes the nuances of Indian startup world; and tries to demystify the secrets behind Technology, Marketing, Mobile and Internet. He is a Writer by passion, Marketer by choice and Entrepreneur by compulsion. Follow him on Twitter here: @_mohul